THE OPPORTUNITY
On average, israeli startups raise more than twice the amount raised by american startups and 20 times more than european startups
A central issue within the OECD BEPS recommendations is the issue of IP registration location.
The essence of guidelines on this issue is that intercompany remuneration of the IP owner should be in line with the locations of its actual functions, assets and risk profile.
It is widely agreed that multinationals are currently evaluating their global operations in a post-BEPS world, seeking to align ownership and control over intangibles with value-creating functions.
Since Israel is home for many of the value-creation activities of global companies, the combination of the new Innovation Box with the already thriving innovation ecosystem creates a strong value proposition for multinationals – both for those who already have a presence in Israel and those considering it.
The Israeli government strongly believes that the BEPS recommendations are an opportunity for multinationals operating in Israel, and is determined to take the necessary steps to facilitate this opportunity.
Israel launched a new IP tax regime as part of the 2017-2018 state budget. The new regime was tailored to the post-BEPS world, encouraging multinationals to consolidate IP ownership and profits in Israel along with existing Israeli research and development (R&D) functions.